At one point in time, the GMC brand neared the chopping block as General Motors worked to restructure its operations. Years later, GMC is a real money maker for the automaker.
Bloomberg reported on on Wednesday that the GMC brand produces more profits and higher transaction prices than GM’s luxury division, Cadillac. It’s not much of a shocker; GMC exclusively sells trucks, crossovers and SUVs, which the market can’t get enough of. It also helps that premium trucks have become a real status symbol in recent years.
“GMC is a massively profitable brand,” Duncan Aldred, vice president of Buick and GMC sales, said, “and one of the big reasons we have double-digit profit margins in the U.S.”
The average GMC vehicle sells for $44,000, which hardly nips at the German luxury brand’s heels. However, Denali-branded vehicles are a different story. Denali vehicles sell for an average of $55,600, which tops Mercedes-Benz, Cadillac, Audi and BMW. It helps that 29 percent of buyers chose a GMC Denali vehicle in 2017. Looking solely at the GMC Yukon, 65 percent of buyers opted for the Denali.
As the car market slows in the United States, high-margin vehicles from the GMC brand will certainly help GM pay the bills and continue investments into electrification and self-driving cars. The 2019 GMC Sierra, which will be revealed today, will include a new Denali variant that should provide even greater differentiation from the 2019 Chevrolet Silverado—even if the interior remains nearly identical.